On Wednesday the Telos blockchain introduced the launch of a brand new software designed to assist low-liquidity tasks fundraise: a NFT product generally known as a “T-Bond.” 

In an interview with Cointelegraph, Douglas Horn — the creator of the Telos whitepaper and the CEO of GoodBlock, a improvement firm who assists with Telos core improvement — mentioned that token-based fundraising is a tough downside for each established and new tasks.

“Many crypto tasks face challenges just like our personal. Telos by no means raised any cash in a token sale, however many who have performed ICOs see their funds operating low earlier than their tasks are market prepared,” he mentioned. “These tasks discover themselves with token reserves they can not promote with out instantly tanking their costs as liquid tokens go available on the market.”

One potential resolution is Telos’ new product: the T-Bond. T-Bonds are bundles of fungible tokens which were locked into non-fungible tokens (NFTs) till a sure situation is met — as an illustration, the passage of a sure period of time or the launch of a mainnet.

On account of promoting T-Bonds, tasks can hypothetically increase funds with out tanking their token costs. Moreover, with the arrival of yield-bearing tokens, T-Bonds have the potential to grow to be a software for traders to hedge yield as properly:

“For tokens which have staking rewards, T-Bond NFTs might act equally to a T-Invoice as a hedge in opposition to altering charges,” mentioned Horn. “In order that creates an thrilling derivative-like DeFi primitive.”

Unsurprisingly, one of many first purposes of T-Bonds can be serving to Telos construct liquidity for its personal TLOS token. TLOS has had a brutal yr whereas a lot of the remainder of the blockchain ecosystem flourished, dropping from $.05 per token to $.02.

Horn, nevertheless, says a scarcity of liquidity, not adoption, is the first barrier to cost appreciation.

“Buyers continuously come to us asking in regards to the undertaking […] however they haven’t made the massive investments they want as a result of there’s not a lot liquidity, which means that their very own investments — even average investments within the tens of hundreds of {dollars} — would create a 5-10X of the market value proper there.”

As an answer, Telos has drawn up a method it calls TULIP (Telos Uniswap Liquidity Implementation Plan): Telos will increase funds by a T-Bond sale that may then be used to seed a liquidity pool on Uniswap, a plan that pulls inspiration from the profitable Uniswap launch of Katalyo, a tokenized actual property dApp on Telos.

As a brand new bull market dawns and tasks look to money in, Horn additionally believes T-Bonds would possibly properly assist a variety of different tasks with their funding woes as properly.

“The identical means that T-Bond NFTs assist Telos stage up by fixing our liquidity and quantity issues we consider we might help others. I feel it might create a extremely robust marketplace for major sale fundraising adopted by secondary market hedging.”